That house looks to be around 2000 sqft, i.e. about $25/sqft in current dollars. There are three effects at play, roughly: $25 => $50 due to stricter codes and

That house looks to be around 2000 sqft, i.e. about $25/sqft in current dollars. There are three effects at play, roughly: $25 => $50 due to stricter codes and higher scarcity of some materials $50 => $100 due to higher wages everywhere in the country $100 => $200 to $1500 due to intentional supply restrictions in specific areas The last effect includes a whole range of artificial shortage policies (height and volume limits, zoning, red tape, ...) It also includes the "zooming inflation" on local wages due to the housing shortage's effect on the cost of living.